Here we have a low cap REIT that I can see will grow into the billions (one day soon, but not so soon as I would like).
Immigration has ben slow these last covid years but that tide is turning now so Texas should grow.
California is expensive and people are moving to Texas so it should grow.
Tesla and other companies are moving to Texas so Texas should grow.
Work from anywhere culture is moving to Texas so Texas should grow.
People need places to live, Shopping centers need ten year leases to build out Lows, and Target stores, to service these new people.
From a chart technical standpoint I would like to see another bounce or retest the lows of the price of this company.
If I do see a retest am buying more.
There is a gap that has yet to be filled further down from here from way back in 2020. That does not mean it needs to get filled, but if it does, I am buying more.
A friend of a friend works at this company and he is smart and his friend is smart and believes the management is smart.
REIT's are not in favor right now - the large interest rates have scared off some investors, but those rates might come down, so the first to buy land with variable interest rate loan will have the refinancing build right into the loan. Imagine your interest rate falling every year of your loan for the first five years? That is what I would do if i worked at this company.
If you buy a house for 1 million and the interest rate is 7% the note will be a monster, but if that rate falls to 3.5% over several years you will be happy and the interest payments will be cut in half. Take the other half of that interest payment and put it in escrow to save up for a downpayment on a new property. The investment will grow in value as the price of that interest payment will be factored into the assessment of your property and all the properties in the neighborhood.
A year from now you could leverage the value for the property to buy more property.
That is what I think these guys are going to be doing for the next few years.
That is why I will buy the dip if there ever is one.
Immigration has ben slow these last covid years but that tide is turning now so Texas should grow.
California is expensive and people are moving to Texas so it should grow.
Tesla and other companies are moving to Texas so Texas should grow.
Work from anywhere culture is moving to Texas so Texas should grow.
People need places to live, Shopping centers need ten year leases to build out Lows, and Target stores, to service these new people.
From a chart technical standpoint I would like to see another bounce or retest the lows of the price of this company.
If I do see a retest am buying more.
There is a gap that has yet to be filled further down from here from way back in 2020. That does not mean it needs to get filled, but if it does, I am buying more.
A friend of a friend works at this company and he is smart and his friend is smart and believes the management is smart.
REIT's are not in favor right now - the large interest rates have scared off some investors, but those rates might come down, so the first to buy land with variable interest rate loan will have the refinancing build right into the loan. Imagine your interest rate falling every year of your loan for the first five years? That is what I would do if i worked at this company.
If you buy a house for 1 million and the interest rate is 7% the note will be a monster, but if that rate falls to 3.5% over several years you will be happy and the interest payments will be cut in half. Take the other half of that interest payment and put it in escrow to save up for a downpayment on a new property. The investment will grow in value as the price of that interest payment will be factored into the assessment of your property and all the properties in the neighborhood.
A year from now you could leverage the value for the property to buy more property.
That is what I think these guys are going to be doing for the next few years.
That is why I will buy the dip if there ever is one.